Convenience Stores Standout as Sales Surge

Success does leave clues and the convenience store sector was the first major retail foodservice sector to target the grocerant niche opportunity by improving food quality, adding fresh prepared Ready-2-Eat and Heat-N-Eat food to more units while sharing industry success clues according to Tacoma, WA based Foodservice Solutions® Grocerant Guru® Steven Johnson. 

2017 is setting up as the year of the C-store according to Johnson where customer migration from legacy grocery stores and legacy restaurant chains  will continue to grow driven by an marked increase in grocerant niche fresh food offerings, improved coffee offerings and increased disposal income do to lower gas prices.  

According to NACS, convenience stores sell 80% of the fuel purchased in the United States. NACS reports that “80% of convenience retailers expect in-store sales to increase this summer compared to last year, and 57% expect their fuel sales to increase compared to last summer.

Approximately three in four retailers are optimistic about the economy (76%), the convenience store industry (73%) and their own business prospects (73%) over the next three months. This retailer optimism mirrors consumer optimism. A record 61% of consumers said they were optimistic about the economy, according to the March 2017 NACS Consumer Fuels Survey.

C-store operators are optimistic about food sales: 53% of all retailers optimistic about their business prospects cite food sales as the reason. Overall, 57% of retailers say that sandwiches and meals will grow their sales, with 35% citing healthy packaged snacks and 28% citing fruits and vegetables.

The move toward selling more food ties into consumer trends. Consumers are increasingly selecting locations to fuel based on the quality of the food inside the store, according to the findings from a NACS national survey of consumers.

 Scott Blank with Bi-State Oil Co may have summed up the undercurrents driving top line growth and bottom line profits the best when he stated “We want to change the customer mindset from a location of fuel with food products to a food and beverage destination with fuel products.  Success does leave clues. 

Invite Foodservice Solutions® to complete a Grocerant Program Assessment, Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 www.FoodserviceSolutions.us  of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869